Racal chief executive steps down early

LONDON (CBS.MW) -- Racal Electronics PLC announced Thursday that its chief executive, David Elsbury, is to take early retirement, stepping down immediately.

Racal
rcaly
said it won't be looking for a permanent replacement until completion of a review of its business strategy, following the recent sale of Racal Telecom to Global Crossing, which boosted its financial position.

Elsbury will temporarily be replaced by Ernest Harrison, executive chairman, who will take on responsibility of chief executive and lead the review. The company gave no other reasons for Elsbury taking early retirement.

Global Crossing announced Monday it would buy the telecommunications telecommunications unit of U.K.-based Racal, giving it a stronger foothold in Europe.

Under the agreement, Global Crossing
GBLX, +2.48%
will pay about $1.65 billion, or 950 million pounds in cash and assumption of 50 million pounds of net lease liabilities. See press release.

Racal will still retain its two businesses in telecommunications services -- Translink and Fieldforce. The company will focus on its defense electronics, industrial electronics, and transportation services businesses.

Shares in Racal gained 9.5 pence, or 2.2 percent, to 448.50 in London.

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